Loans and advances increased by R195-billion, or 11.7 percent, in the second quarter of this year compared with the previous quarter. "This is not the first sign of summer, as total loans and advances are still R31.9-billion less than the R1895.6-billion at the end of last year," says Du Plessis.

The lowering of lending standards will undoubtedly have a positive effect on consumer sentiment. It should also confirm the bottoming of house prices. "Investors in domestic economically cyclical shares should be amply rewarded over the next year in spite of the current downward correction in international stock markets, especially in China," says Du Plessis.

"As cash and fixed-interest investments will probably not be the best asset class for the next few years, any weakness in equity prices in the coming months should be regarded as a buying opportunity," says Du Plessis.

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